Tuesday, May 2, 2017

United Airlines CEO will get grilled by Congress Tuesday for David Dao's violent removal (UAL, LUV, ALK)

United Airlines CEO will get grilled by Congress Tuesday for David Dao's violent removal (UAL, LUV, ALK)
By

Thomson Reuters

WASHINGTON/NEW YORK, May 2 (Reuters) - United Airlines Inc executives will visit Capitol Hill on Tuesday to face lawmakers' questions about the forcible removal of a passenger on an overbooked flight last month, an incident that provoked international outrage.

United Chief Executive Oscar Munoz's appearance before the U.S. House Transportation and Infrastructure Committee will test how the Republican-led Congress addresses company misconduct at a time of sweeping deregulation in Washington. Republicans largely back President Donald Trump's push to undo industry rules and regulations they say hamper business growth.

Joining Munoz at the hearing will be United President Scott Kirby as well as executives from American Airlines, Southwest Airlines, Alaska Airlines and a consumers' union consultant.

The executives will be grilled on the growing consumer anger directed at airlines, which came to a head when Dr. David Dao was dragged from a United flight at a Chicago airport on April 9 to make room for crew members on the aircraft.

It is the chance to learn "what is being done to improve service for the flying public," Committee Chairman Bill Shuster, a Republican, said in a statement.

Representative Rick Larsen, the top Democrat on the House panel's aviation subcommittee, told Reuters he expected it to be "very pointed" and that executives should anticipate "pretty rough" questions.

United last week reached a settlement with the 69-year-old Dao, whose removal prompted intense public backlash when fellow passengers released video online showing aviation police dragging him down the aisle as passengers cried out and gasped at his bloodied face.

United also changed its policies by offering passengers who give up their seats up to $10,000 and by reducing overbooked flights. The airline has promised to no longer call on law enforcement officers to deny ticketed passengers their seats.

Southwest said last week it would end overbooking altogether.

Airline executives are expected at Tuesday's hearing to outline specific actions they have taken or will take to try to prevent future incidents such as the one on the United flight, congressional aides said.

A U.S. Senate panel will hold a separate hearing on Thursday.

Trump administration relaxing airline regulations

ReutersWhite House spokesman Sean Spicer said the president would not, at this point, weigh in on whether new airline regulations are needed.

"I'll leave it up to Congress to decide whether it's appropriate to address this legislatively. Once there was a piece of legislation, then we could have an opportunity to weigh in," Spicer said on Monday.

But it is unclear how any new legislation would square with Trump's deregulatory push.

Shortly after he took office, Trump directed federal agencies to do away with two old regulations for every new one. He asked airline executives in February to identify regulatory hurdles.

The Trump administration in March halted public comment on a Obama-era move to probe some airlines' prevention of various travel websites from showing their fares and whether to require greater transparency about baggage fees along with quoted fares.

The administration is also extending the compliance date by one year for a new regulation requiring reporting of data for mishandled baggage and wheelchairs in aircraft cargo compartments.

Transportation Secretary Elaine Chao, through a spokeswoman, declined to comment on whether the United incident would prompt any regulatory changes. Her department said earlier this month it was investigating the matter.

Congressman Peter DeFazio, the top Democrat on the House committee holding Tuesday's hearing, said it was "way too early" to know if the voluntary policy changes announced by United are permanent.

Larsen said new airline regulations were not yet under discussion but that if carriers did not make a firm commitment to improve customer service, then "the options for legislation open."

(Reporting by David Shepardson in Washington and Alana Wise in New York; additional reporting by Steve Holland and Amanda Becker in Washington; writing by Amanda Becker; Editing by Mary Milliken)